Calculator inputs
The page stacks content in a single main column, while the calculator fields use a responsive 3-column, 2-column, and 1-column grid.
Example data table
This example matches the default inputs, so you can test the calculator quickly.
| Input | Example Value | Why It Matters |
|---|---|---|
| Total shares granted | 10,000 | Sets the maximum equity units available. |
| Exercise price | $1.50 | Determines option purchase cost. |
| Current share price | $8.00 | Starts the valuation model. |
| Outstanding shares | 5,000,000 | Supports ownership and dilution calculations. |
| Months worked | 18 | Shows how much is already vested. |
| Vesting schedule | 48 months, 12-month cliff | Controls release timing of shares. |
| Years to exit | 4 | Projects the target liquidity horizon. |
| Growth, dilution, tax | 15%, 4%, 25% | Drives value expansion and deductions. |
Formula used
The model starts with current value, then adjusts for growth, dilution, vesting, discounts, and estimated deductions.
Current Company Value = Current Share Price × Current Outstanding Shares
Future Company Value = Current Company Value × (1 + Growth Rate)Years
Future Outstanding Shares = Current Outstanding Shares × (1 + Dilution Rate)Years
Future Share Price = Future Company Value ÷ Future Outstanding Shares
Projected Vested Shares = Total Shares × (Vested Months ÷ Vesting Months) after the cliff is reached.
Gross Value = Projected Vested Shares × Future Share Price × (1 − Liquidity Discount)
Net Proceeds = Gross Value − Exercise Cost − Tax − Selling Cost
Risk Adjusted Net = Net Proceeds × Success Probability
How to use this calculator
Follow these steps to evaluate an offer, promotion, or retention package.
Enter the grant size, exercise price, and current share price. Then add total outstanding shares to estimate ownership percentage.
Enter months already worked, total vesting months, and cliff months. This helps the tool split current value from future vesting value.
Set your time to exit, expected company growth, and annual dilution. These assumptions shape future share price and ownership.
Add tax rate, selling cost, liquidity discount, and success probability. These make the projection more realistic for career planning decisions.
Press the calculate button. Review net proceeds, risk adjusted value, yearly table, and chart before comparing offers or retention packages.
Frequently asked questions
These short answers explain the assumptions behind the calculator.
1. What does this calculator estimate?
It estimates how a grant may grow by exit using vesting, valuation growth, dilution, taxes, liquidity discount, and selling costs. It helps compare compensation outcomes during career decisions.
2. Is it only for stock options?
No. It also works for RSUs and direct share grants. For RSUs, set exercise price to zero. The rest of the model still estimates vesting and likely after-tax value.
3. Why is dilution included?
Dilution increases outstanding shares over time. That usually reduces your ownership percentage and can slow per-share growth, even when the company value itself keeps rising.
4. What is success probability?
Success probability creates a risk-adjusted view. It does not change gross value. It simply discounts net proceeds by the chance that your exit scenario actually happens.
5. Should I use FMV, 409A, or market price?
Use the best current price available for your situation. Private companies often use recent FMV or 409A. Public companies usually use the latest market price.
6. Can I compare two job offers with it?
Yes. Run the calculator twice using each offer's grant size, vesting schedule, growth assumptions, and tax estimate. Compare net and risk-adjusted values rather than headline share counts alone.
7. Does this replace tax or legal advice?
No. It is a planning tool. Real option exercise rules, AMT, withholding, and jurisdiction-specific treatment can differ, so use a qualified adviser for final decisions.
8. Which assumptions matter most?
Growth rate, dilution, years to exit, and tax rate usually drive the largest swings. Exercise price matters more when options are expensive or current share value is still modest.